The Central Bank of Nigeria has borrowed U.S.$7.5 billion from U.S. banks JP Morgan and Goldman Sachs by pledging securities as collateral, reportsThe loan agreement and lack of transparency around it have led to concerns about Nigeria's fiscal stability and creditworthiness. Analysts point out that if the CBN defaults on these loans, it could trigger a sell-off of Nigerian bonds and negatively impact the country's credit rating, potentially pushing it into"junk" status.
To worsen matters, the Central Bank Governor Godwin Emefiele was suspended by President Bola Tinubu, on June 9, 2023. Although the suspension was related to the bank's alleged support of militant group Boko Haram, as well as its support of the outlawed separatist group, the Indigenous People of Biafra , it has placed a cloud over the financial affairs at the Central Bank. Concerns for the bank's ability to manage the country's economy has led to calls for an investigation.
Nigeria's dollar bond due in 2030 sank 2.295 cents to its lowest level in the past one month on Friday at 83.221 cents as a crisis of confidence in the economy heightened among…
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